Return Filing, Format, Eligibility, and Rules for GSTR 1

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Date: 03 Jan 2023


What is GSTR-1?

 

Everyone subject to the GST regime is required to file GST returns to comply with the regulations. These returns compute the tax you must pay to the government and provide clear facts about your income. It's crucial to keep in mind that if you want to submit GST returns, your sales and purchase invoices must be GST-compliant. GSTR-1 is one of the documents you'll need to file your taxes. This is so that all other forms can be auto-populated with the data from your GSTR-1 filing.

 

What is GSTR-1?

Each registered taxpayer must submit the GST-1 Return every month or every three months. GSTR-1 includes details of every sale and supply of goods and services made by the taxpayer throughout the tax period. This return does not cover composition sellers, non-resident international taxpayers, and people with a UIN.

 

Sections under GSTR-1

The GSTR-1 form includes thirteen sections within it. These sections are: 

  1. GSTIN

  2. Legal and Trade name

  3. Aggregate turnover in the previous year

  4. Taxable outward supplies to registered persons (including UIN holders), excluding zero-rated supplies and deemed reports.

  5. Taxable interstate transfers made to unregistered parties where the invoice total exceeds Rs. 2.5 lakh

  6. Zero-rated supplies, as well as deemed exports

  7. Taxable goods and services to unregistered people

  8. The type of outgoing supplies that are zero-rated, exempt, or not subject to GST

  9. Modifications to taxable outward supplies that were previously reported on the GSTR-1 return for preceding tax periods (including debit notes, credit notes, and refund vouchers issued during the current period)

  10. Issued to an unregistered person are a debit note and a credit note

  11. Details of advances received, adjustments made or updates to information submitted during a prior tax period

  12. Summary of external supplies based on HSN codes

  13. Documents issued during the period.

 

When is GSTR-1 due?

The turnover determines GSTR-1's due dates. GSTR-1 returns must be filed either monthly or quarterly, depending on the business's turnover. Businesses can file quarterly returns if their annual revenue is up to Rs. 1.5 crore; otherwise, they must file monthly returns if their yearly income exceeds Rs. 1.5 crore.

 

Small taxpayers with an annualised turnover of fewer than 5 crores can begin filing GSTR-1 and GSTR-3B on January 1, 2021. The  GSTR-1 return is due on the 13th day of the following month in the following quarter. The taxpayers may still send monthly invoices, though.

 

Who is liable to file GSTR-1?

Each registered dealer must complete the GSTR-1 filing process. The same is required and unaffected by the transactions that occurred that month. If you are a registered dealer, you must complete the GSTR-1 filing process even if there are no sales or transactions. However, the following people or companies are excluded from submitting GSTR-1.

  1. Input Service Distributor: A commercial organisation automatically qualifies as an input service distributor (ISD) under the GST regime if it receives invoices for the services used by its branches.

  2. Composition Dealer: Beginning on April 1, 2019, companies with a maximum yearly turnover of 1.5 Crores may choose to participate in the composition scheme. These companies are exempt from submitting GSTR 1.

  3. A supplier of online information, database access, or retrieval service providers are exempt from the GSTR-1 filing requirement.

  4. Non-resident taxable person: You are also free from submitting GSTR-1 on behalf of your company if you come within the category of non-resident taxable people.

  5. This does not apply to taxpayers responsible for collecting tax at source (TCS) or deducting tax at source (TDS).

 

Pre-requisites for filing GSTR-1

You must have a 15-digit PAN-based GSTIN and be a GST-registered taxpayer.

You must maintain detailed invoices with distinct serial numbers for your transactions, including intrastate and interstate transactions, business-to-business (B2B), and retail (B2C) sales. This also covers stock transfers between your company's locations in other states and transactions involving exempt and non-GST products.

To validate your return using an EVC (electronic verification code) or a digital signature certificate, you must either have an OTP from your registered phone (class 2 or higher). Using an Aadhar-based e-sign, you can also submit your GST returns.

 

How to file GSTR-1?

On the GSTN platform, filing GSTR-1 is simple. Simply follow the instructions listed below to submit your GSTR-1 using the GSTN portal:

 

Step 1: Log in to the GSTN portal using the User ID and password provided.

 

Step 2: Choose "Services."

 

Step 3: Select "Returns."

 

Step 4: On the "Returns Dashboard," choose the month and year you want to file the return.

 

Step 5: Click on "GSTR-1" after the returns for the given time have been displayed.

 

Step 6: After that, you may either upload or complete your returns online.

 

Step 7: You have the option of adding or uploading invoices.

 

Step 8: Make sure the form is filled out completely and accurately by rechecking it.

 

Step 9: Select "Submit."

 

Step 10: Click "File GSTR-1" after verifying the information you supplied.

 

Step 11: Electronically or digitally sign the form.

 

Step 12: When a pop-up is displayed on your screen, click "Yes" to confirm that you want to file a GSTR-1. Watch for the generation of an ARN (Acknowledgement Reference Number).

 

Late fees and penalty

You will be required to pay a late charge at the following rate if you cannot submit your GSTR-1 return by the deadline. A yearly interest rate of 18% will also be assessed on the amount of unpaid taxes.

  • In the case of zero liability, a late of Rs. 20 will be applied.

  • In all other cases, a late fee of Rs. 50 will be charged. 

 

Conclusion

In essence, information about outgoing supplies made during the month must be recorded in the GSTR-1 format as either invoice-, rate-, or state-specific information. The credibility of one's firm will suffer if the GSTR-1 returns are not submitted on time. Consequently, as ITC depends on supplier compliance, it will also affect one's customers. You can file GSTR via busy accounting software.